Not sure if I used the correct terms but what is the difference in security and privacy between downloading from a public wifi (or a closed wifi; with password) and mobile hotspot (sharing 4G/5G data from your phone to your computer)? Which one is recommended or does it not matter?


no worries.
the net effect of client separation is that your device sees no other layer 2 devices on the wlan besides the gateway. this would typically be enforced at the frame level by the APs and is separate from any radio privacy cryptography.
a properly configured wireless setup would assume every client is compromised and would also disallow local client-client via source routing or proxy ARP or any other escape options. 100% secure? probably not, but its a non trivial barrier that would have to be circumvented.
as with e.g. broken WEP years ago, there are still options to mess with clients at ~Layer 1 but I dont believe its currently as trivial as it used to be.
Good explanation, a note that most public WiFi will use client separation. Macca’s, starbucks, airplanes etc you will only ever see your device and the gateway. (More for other people that are reading, I assume you know this 😄)